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The relationship between inequality and redistribution is usually studied under the assumption that the government collects different amounts of taxes from each citizen (voter) but gives back the same amount (in cash or in kind) to everyone. In this paper we consider what happens if the...
Persistent link: https://www.econbiz.de/10011402700
What matters for individuals' preferences for redistribution? In this paper we show that consequentialist beliefs about inequality - beliefs about how economic inequality changes the crime rate or the quality of democratic institutions, for example - have a large causal impact on individuals'...
Persistent link: https://www.econbiz.de/10014383934
Due to technological change, the opening of borders, and increased economic integration, the financial costs of relocating businesses and factors of production, moving residences, changing jobs, and transporting goods and services across borders pose new challenges for countries and subnational...
Persistent link: https://www.econbiz.de/10013457362
Persistent link: https://www.econbiz.de/10014530056
According to a standard argument, higher income inequality fosters redistributive activities of the government in favor of the median income earner. This paper shows that if redistribution is achieved by a public provision of goods and services rather than by transfers, higher income inequality...
Persistent link: https://www.econbiz.de/10011409989
The level and composition of public expenditures and revenues both have implications for economic development, as shown by the 'fiscal multiplier' and the 'quality of public finance' literature. Public finance decisions also influence the distribution of income. Based on a review of the...
Persistent link: https://www.econbiz.de/10012302041
We study the impact of a government spending shock on the distribution of income and wealth between cohorts in a dynamic stochastic Overlapping Generations model with two types of households, Ricardian households and rule-of-thumb consumers. We demonstrate that an unexpected increase in...
Persistent link: https://www.econbiz.de/10011458011
We review the literature on the public choice approach to explaining redistribution policies. The focus is on policies that are pursued with the sole reason to redistribute initial endowments. Moreover, we restrict ourselves to redistribution in democracies. In democratic settings, generic...
Persistent link: https://www.econbiz.de/10011565576
We study the effects of immigration on native welfare in a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a redistributive welfare state. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of...
Persistent link: https://www.econbiz.de/10010418118
This paper utilizes a simple model of redistributive politics with voter abstention to analyze the impact of nonpartisan ‘get-out-the-vote’ efforts on policy outcomes. Although such efforts are often promoted on the grounds that they provide the social benefit of increasing participation in...
Persistent link: https://www.econbiz.de/10003888103